Investors are shifting their focus to the release of Thursday’s Personal Consumption Expenditures (PCE) report. The Federal Reserve’s preferred inflation measure, this report is expected to provide a major insight into the central bank’s next policy decision.
Economists are expecting October’s PCE report to show a 3.5% rise in “core” inflation, which excludes volatile food and energy costs. Importantly, Thursday’s PCE report is expected to show whether or not the US economy may be headed for a “soft landing”, whereby inflation falls to the central bank’s 2% target without severe economic repercussions.
A slew of corporate earnings reports are also expected later this week, with Dollar Tree, Foot Locker, Kroger, Okta, Salesforce, Snowflake, and Ulta Beauty expected to release their financial results.